Capital Gains Tax (CGT) Top Questions
Posted 16 April 2019
Below we take a look at Capital Gains Tax, particularly relating to the primary residence exclusion. What we’ve covered are some of the most pressing questions asked by our users on our help-desk. Take a few minutes to read the Q&As. Hopefully what has been unpacked in these Q&As will benefit and assist you with any uncertainties you might have experienced regarding this topic.
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Budget Speech: VAT rises by 1%, predictions were correct!
Posted 21 February 2018
Taxpayers should breathe a sigh of relief as a much lower than expected R36bn in increased taxes was announced by the once-off Minister of Finance. The biggest news amongst the increases was the VAT rise of 1%. For the first time in 25 years, all South Africans will see most goods and services become a little bit more expensive thanks to the Value Added Tax rise. Although controversial, a VAT rise was much needed and will bring in almost R23...
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How home office deduction impacts Capital Gains Tax
Posted 13 October 2017
With “flexible” employment being the new buzzword, more and more people are working part or all of the week from an office in their home. Eliminating the daily commute, saves staff valuable time in their day which they can put to good use from the comfort of their own house.
Home office expenses qualify as a tax deduction if various conditions are met. This means they reduce taxable income and ultimately your tax liability. However, not just anyone qualifies to deduct his or her home office expenses...Read more →
2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?
Posted 22 February 2017
Personal Tax Rates (rates below)
Individuals across the country, those qualifying above the new tax threshold of R75 750 (previously R75 000) will be paying increased taxes of R16.5bn (previously R5.65bn in actual tax increase) for the next tax year, most of this will be for high income earners, however. Taxpayers generally across the board will be earning the tiniest bit more money each year as their tax brackets...
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What is Turnover Tax?
Posted 23 March 2016
Turnover Tax is a simplified tax system only available to sole proprietors, partnerships, companies or close corporations with a “qualifying turnover” of less than R1m per year. These types of entities are called micro businesses.
As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administrat...
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2016 Budget Speech: Welcome Back, Minister! You Couldn't Have Returned Just for the Free Lunch?
Posted 25 February 2016
The 24th of February 2016 was supposed to be a watershed moment for the Economy of South Africa. The old-new Minister of Finance, Pravin Gordhan, was to deliver his budget for the 2016/2017 tax year and save South Africa from a financial pit-fall in the form of an International Ratings Agency downgrade. The jury is still out on whether or not this is possible. Immediately after the budget was revealed the Rand tumbled 2%, which doesn’t bode well for market sentiment. However, ...
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2016/2017 Tax Tables
Posted 24 February 2016
Income Tax Tables for the 2017 Tax Year - 1 March 2016 to 28 February 2017
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Income Tax Thresholds
The Ins and Outs of Donations Tax
Posted 17 February 2016
Have you been the lucky recipient of a gift or donation from a generous family member of friend? Perhaps they struck it lucky on the Lotto and decided to share their winnings with you!
Or maybe you're the giving type and have donated cash, shares or even property to someone you felt deserved a little boost.
Irrespective of whether you're the giver or receiver of a donation or gift, it's good to understand donations from a tax perspective, and how to declare these to SARS.
Ready to find out?
Let's get started.
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SARS Tax Tables 2015
Posted 26 February 2015
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Thank you Minister - we expected worse! 2015 Budget
Posted 25 February 2015
New Finance Minister Nene delivers his first budget with some “better than expected” tax increases. The fight against corruption was highlighted with the minster announcing a series of reforms and procedures to be introduced both to curb corruption and make doing business with the state easier. The minister announced that R25bn would be saved in expenditure over the next two years, but R16.8bn is to be raised this year via tax increases and a remarkably large rise in the fuel and road accident fund levies. To be honest, we expected greater tax increases from the minister, thankfully he spared us some of the pain! ...Read more →
2014 Budget - A move to economic transformation
Posted 26 February 2014
In delivering what could possibly be his last annual budget and perhaps in an election year a very pragmatic one, Minister Pravin Gordhan painted a rather positive picture for the future of South Africa, whilst at the same time warning of the impact the global economy is having on the South African economy. He too, had a “good story” to tell of how well managed the economy is and how we have survived the economic downturn of the last half decade. The minister, like his predecessors b...Read more →
Garnishee orders explained: How SARS can deduct penalties directly from your pay cheque and how to stop it
Posted 14 November 2013
The last days of the month are often the most exciting for employees as they look forward to spending their monthly pay cheques. Unfortunately for many taxpayers anticipation quickly turns to grief when the money they receive in their bank account is suddenly less than they had expected. Stress and anxiety then result in light of impending debit orders and monthly expenses that need to be paid.
Apart from the ordinary deductions that your employer takes off your salary each month - expenses for your benefit such as medical aid or a retirement / pension plan - there is another deduction that can take place unexpectedly: a garnishee order...Read more →
SARS is asking for more documents. Are they auditing me?
Posted 13 August 2012
For most people upon submission of their year-end income tax return, either nothing much will happen or a refund will be due, this being paid back within a matter of days. However in a small number of cases SARS requires extra documentation or proof to be submitted so that they can verify that everything you submitted in your tax return is correct. Don’t be afraid, although many people consider this an “audit” it isn’t nearly as frightening as that and doesn't mean you have done anything wrong. A true audit would be SARS requesting years of past documentation and opening up for examination all your tax affairs from previous years. ...Read more →
Do I earn enough to have to pay tax?
Posted 26 March 2012
Why must I pay tax, I don’t earn enough! Will I get a penalty if I don’t disclose all my income to SARS? These questions are common and usually include other sources of income such as interest from a bank account. If these earnings don't extend above the tax threshold then why disclose them and pay tax? Unfortunately while you may not have to pay tax on the income, you will certainly have to disclose it to SARS. Let’s assume you earn a salary of R200 000 a year and hav...Read more →
South African budget 2012/2013 - "Tax by stealth"
Posted 23 February 2012
Eagerly anticipating the budget this year and forever the optimist, Finance Minister Pravin Gordhan started off well: R9.5bn of individual tax savings and revenue collection up by R10bn from the latest estimates. However, for the individual taxpayer, things went slightly downhill from there... Let’s unpack this a bit.
Not all Doom and Gloom
Ok, ok so maybe I have been too harsh as only certain individuals (the richer ones) will actually be subject to greater tax, the lower end income earners will benefit quite a bit from the new tax changes...Read more →